Condo sellers must tell buyers about special assessment costs — or risk lawsuit

The South Florida condominium market has slowed due to rising costs and new inspection requirements, making disclosure of special assessments crucial. Recent cases, such as *Eugene and Debbie Friedlander v. Mark Kaplan*, demonstrate that sellers who fail to disclose known or pending special assessments – even those listed in board meeting minutes – can be sued and forced to cover those costs. Special assessments are one-time charges for major repairs or deficits, and buyers are now proactively reviewing association records to uncover potential costs.

Sellers are increasingly incentivized to cover pending assessments or offer credits to avoid deterring buyers. Legal precedent from a 1985 Florida Supreme Court ruling reinforces a seller’s duty to disclose material facts affecting property value. This means sellers must be transparent about future assessments, as failing to do so could lead to liability for fraudulent nondisclosure.

Experts advise sellers to prioritize full transparency and consider concessions to incentivize sales in the current market. Buyers should ensure all agreements regarding assessments are clearly outlined in the purchase contract and carefully review association records to protect their interests.

(Source：Miami Herald)